Long-term mortgage rates now at highest point since 2008

Sep 8, 2022, 7:01 AM | Updated: 11:59 pm
FILE - A "sold" is posted outside a single family home in a residential neighborhood, in Glenside, ...

FILE - A "sold" is posted outside a single family home in a residential neighborhood, in Glenside, Pa., Wednesday, Aug. 4, 2021. Average long-term U.S. mortgage rates jumped again this week, Thursday, Sept. 8, 2022, to their highest level in almost 14 years, certain to keep even more potential buyers out of a housing market that's cooled considerably since the Federal Reserve began jacking up its benchmark borrowing rate. .(AP Photo/Matt Rourke, File)

(AP Photo/Matt Rourke, File)

WASHINGTON (AP) — Average long-term U.S. mortgage rates jumped again this week, hitting the highest levels in almost 14 years and pushing even more would-be buyers out of the market.

Mortgage buyer Freddie Mac reported Thursday that the 30-year rate jumped to 5.89% from 5.66% last week. That’s the highest the long-term rate has been since November of 2008, just after the housing market collapse set off the Great Recession. One year ago, the rate stood at 2.88%.

The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, rose to 5.16% from 4.98% last week. That’s the first time the 15-year rate has been above 5% since 2009, as the real estate market went into a years-long slump. Last year at this time the rate was 2.19%.

Rising interest rates — in part a result of the Federal Reserve’s aggressive push to tamp down inflation — have cooled off a housing market that has been hot for years. Many potential home buyers are getting pushed out of the market as the higher rates have added hundreds of dollars to monthly mortgage payments. Sales of existing homes in the U.S. have fallen for six straight months, according to the National Association of Realtors.

Mortgage rates don’t necessarily mirror the Fed’s rate increases, but tend to track the yield on the 10-year Treasury note. That’s influenced by a variety of factors, including investors’ expectations for future inflation and global demand for U.S. Treasurys.

Recently, faster inflation and strong U.S. economic growth have sent the 10-year Treasury rate up sharply, to 3.27%.

The Fed has raised its benchmark short-term interest rate four times this year, and Chairman Jerome Powell has said that the central bank will likely need to keep interest rates high enough to slow the economy “for some time” in order to tame the worst inflation in 40 years.

The government reported that U.S. economy shrank at a 0.6% annual rate from April through June, a second straight quarter of economic contraction, which meets one informal sign of a recession. Most economists, though, have said they doubt that the economy is in or on the verge of a recession, given that the U.S. job market remains robust.

Applications for jobless aid fell last week to their lowest level since May, despite the Fed’s moves to tame inflation, which usually tends to cool the job market as well.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Arizona Secretary of State Latie Hobbs, left, the Democratic nominee for governor, and Kris Mayes, ...
Associated Press

GOP quiet as Arizona Democrats condemn abortion ruling

PHOENIX (AP) — Arizona Democrats vowed Saturday to fight for women’s rights after a court reinstated a law first enacted during the Civil War that bans abortion in nearly all circumstances, looking to capitalize on an issue they hope will have a major impact on the midterm elections. Republican candidates were silent a day after […]
17 hours ago
Associated Press

US spy satellite launched into orbit from California

VANDENBERG SPACE FORCE BASE, Calif. (AP) — A classified satellite for the U.S. National Reconnaissance Office launched into orbit aboard a United Launch Alliance Delta 4 Heavy rocket on Saturday. The NROL-91 spy satellite lifted off at 3:25 p.m. from Vandenberg Space Force Base in California’s Santa Barbara County. It was the last launch of […]
17 hours ago
Yasir al-Rumayyan, the governor of Saudi Arabia's sovereign wealth fund, known as the Public Invest...
Associated Press

Saudi Arabia’s triumphant week reclaims the West’s embrace

NEW YORK (AP) — Saudi Arabia appears to be leaving behind the stream of negative coverage that the killing of Jamal Khashoggi elicited since 2018. The kingdom is once again being enthusiastically welcomed back into polite and powerful society, and it is no longer as frowned upon to seek Saudi investments or accept their favor. […]
17 hours ago
A model of the house where a precision counterterrorism operation killed al-Qaida's leader Ayman al...
Associated Press

CIA unveils model of al-Qaida leader al-Zawahri’s hideout

McLEAN, Virginia (AP) — The CIA has revealed a model of Ayman al-Zawahri’s safe house, used to brief President Joe Biden about the al-Qaida leader’s whereabouts before the agency killed him in a drone strike in Afghanistan. Shortly after al-Zawahri’s death, White House officials released a photo showing Biden talking to CIA Director William Burns […]
17 hours ago
Foreign Minister of Sri Lanka Ali Sabri addresses the 77th session of the United Nations General As...
Associated Press

Live updates: U.N. General Assembly

UNITED NATIONS (AP) — The Latest on the U.N. General Assembly: SAUDI ARABIA Saudi Arabia’s foreign minister said Saturday that the world needs more fossil fuel investments, a message at odds with the United Nations’ own panel of scientists and researchers. “We need to invest in fossil fuels in order to meet growing international needs […]
17 hours ago
A Police officer detains a demonstrator during a protest against a partial mobilization in Moscow, ...
Associated Press

Kremlin stages votes in Ukraine, sees protests in Russia

Hundreds of people were arrested in Russia for protesting a military mobilization order aimed at beefing up the country's troops in Ukraine.
17 hours ago

Sponsored Articles

...
SCHWARTZ LASER EYE CENTER

Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.
...
Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
Long-term mortgage rates now at highest point since 2008